Indian Railway Catering and Tourism Corporation (IRCTC IN) – Q3FY26 Result Update – Catering division breaks the growth shackle – BUY
Published on 14 Feb 2026
We increase our EPS estimates by 3%/4% for FY27E/FY28E as we fine tune our top-line growth assumptions for internet and catering division. IRCTC IN reported strong performance in 3QFY26 with revenue/EBITDA/PAT beat of 8%/4%/5% respectively led by healthy traction in catering division and non-convenience fee income. Catering division reported a 19.2% YoY growth with a topline of Rs6,614mn led by introduction of 40 trains while traction in non-convenience fee income was aided by 86%/42% growth in ad-revenue/loyalty income. Led by capacity expansion at Rail Neer (4 plants to be added), improved growth visibility in non-convenience fee income and healthy uptick in catering division (260 Vande Bharat trains in pipeline) we expect sales/PAT CAGR of 8%/10% over FY25-FY28E. IRCTC trades at 31x/29x our FY27E/FY28E EPS estimates. Given decent growth prospects, debt-free BS and attractive valuations (check exhibit 3 for historical band chart) we retain BUY with a TP of Rs850 (40x FY28E EPS; earlier 44x as we roll forward our valuation).
